Cryptocurrency markets continued to experience widespread declines last week, with capital outflows from crypto investment products for the second consecutive week. Although trading volumes have sustained, investor sentiment remains cautious amid continued market volatility and macroeconomic uncertainty. While major cryptocurrencies such as Bitcoin and Ethereum faced significant withdrawals, some altcoins showed resilience and challenged the overall downward trend.
- There was $1.17 billion in outflows from crypto exchange traded products (ETPs), an increase of 70% from the previous week.
- Bitcoin ETPs led the outflow of $932 million, but short Bitcoin products also saw some inflows.
- Ethereum funds were unable to resist negative momentum, recording $438 million in outflows.
- Selective altcoins like Solana and XRP bucked this trend with notable inflows, demonstrating investor interest in specific projects.
- Assets under management for cryptocurrencies ETP fell to $207.5 billion, the lowest level since mid-July.
Cryptocurrency investment products are under pressure as market sentiment remains bleak due to the aftermath of the October 10 flash crash and a wave of macroeconomic concerns. CoinShares reported that last week’s outflows from exchange-traded products tracking Bitcoin, Ethereum, and other digital assets reached $1.17 billion, a significant increase from the $360 million in outflows recorded the previous week. Volume rose to $43 billion, but the market’s optimism was short-lived, with Thursday’s temporary recovery quickly fizzling out as concerns about a possible US interest rate cut in December resurfaced.
Bitcoin outflows continue, and Ethereum is struggling
Bitcoin-focused ETPs saw withdrawals again this week, totaling $932 million, slightly down from $946 million the previous week. Despite this trend continuing, Short Bitcoin ETPs saw inflows of $11.8 million, marking the largest weekly inflow since May 2025, according to CoinShares. Meanwhile, the Ethereum fund was unable to break free from negative momentum, suffering $438 million in outflows after having $57 million in inflows the previous week.
While Bitcoin and Ethereum experienced significant outflows, some altcoins bucked the trend. Solana (SOL) led the way last week with $118 million in inflows, bringing the nine-week total inflows to around $2.1 billion. XRP, Hedera (HBAR), and Hyper Liquid (HYPE) also recorded positive flows of $28 million, $27 million, and $4.2 million, respectively, highlighting investor interest in certain alternative blockchain assets during turbulent times.
Overall, assets under management across crypto ETPs fell to $207.5 billion, the lowest level since mid-July. The decline followed two weeks of outflows totaling about $1.5 billion, with assets peaking at more than $254 billion in early October. Despite the decline, some sectors of the cryptocurrency market are showing signs of resilience, suggesting potential opportunities for investors looking to diversify or hedge amid the ever-evolving landscape of blockchain and digital assets.